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Procurement outsourcing report released
mikrofax.com 08/02/2007
A recent report suggests that many businesses many not fully understand the benefits that procurement outsourcing can bring.
The study, conducted by NelsonHall, gives companies advice on how to choose their e-procurement software and benefits and risks associated with each level of indirect procurement.
In order to assess the true financial impact of outsourcing on company finances, it is vital to be aware of the prior costs and difficulties assessing these expenditures and the reasons that outsourcing was implemented.
Rachael Stormonth, research director for NelsonHall said: "Identifying these internal issues will both help an assessment of whether these can be addressed through BPO and also the identification of service providers with appropriate capabilities."
Service providers also need time to assess the company's requirements before offering to provide solutions.
Outcomes are more important than processes in the light of service level agreements, and the report suggests that reputable procurement companies may be able to offer advice on more effective procedures.
Taking these measures and also offering an end-to-end procurement service may contribute to client's further satisfaction with their procurement systems, Ms Stormonth claimed recently.
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